BANGKOK, Aug 20 (Reuters) - Thailand's economy grew astronger-than-expected 3.3 percent in the second quarter fromthe previous three months as it continued to recover from lastyear's devastating floods, helping it withstand the globalslowdown for now.

Given the recovery, economists said there was no pressingneed for the central bank to cut interest rates. Most expect itto leave policy on hold all year after cuts in November andJanuary to help industry deal with the disaster.

The second-quarter figure reported on Monday by the NationalEconomic and Social Development Board (NESDB) was higher thanthe 1.7 percent expected in a Reuters poll, and came after arevised record 10.8 percent expansion in the first quarter, wheneconomic activity started to rebound from the floods.

"Second-quarter GDP increased because factories were able toincrease their manufacturing capacity, although that is not backto full potential yet," Arkhom Termpittayapaisith,secretary-general of the NESDB, told a news conference.

A high number of tourists also helped in the second quarter,the NESDB said.

"Domestic demand remained strong and is providing enoughcushion against global economic risks, at least for the nearfuture," said Usara Wilaipich, an economist at StandardChartered in Bangkok.

Elsewhere in Southeast Asia, growth in Indonesia andMalaysia was also surprisingly buoyant in the second quarter,with strong domestic demand and government spending offsettingweaker exports, though Singapore's trade-reliant economy shrank.(Indonesia GDP Malaysia

Despite external uncertainty, the NESDB said it expected theThai economy to grow 5.5-6.0 percent this year, little changedfrom the 5.5-6.5 percent predicted in May, betting on domesticdemand and further recovery in the manufacturing sector.

"The agency has trimmed the higher end of the forecastbecause exports to Europe have been affected," Arkhom said.

Exports fell in June and were forecast by a Reuters poll todrop again in July.

The NESDB cut its export growth forecast for 2012 to 7.3percent from 15.1 percent. Arkhom said that was also due tolower rice exports as a result of a government interventionscheme that has made prices uncompetitive.

Even so, reflecting the unusual post-flood situation and thesteady recovery in industry, exports in the second quarter weremuch improved from the first. They were only 0.4 percent lowerthan a year before after a drop of 4 percent in January-March.

The government has introduced measures to help firms copewith the floods, and demand has benefited from policies promisedduring last year's election, such as big wage increases and the rice intervention scheme, which will boost income and spending.

STEADY RATES

The central bank, which cut its policy rate in November andJanuary to help business deal with the floods, has said economicgrowth is close to potential as domestic demand has picked up.

It has left the rate at 3.0 percent at the last fourmeetings and may stay there unless the global economy worsens.

"Interest rates will probably stay unchanged this year. Theglobal situation is not so severe that we need a rate cut yet,"said Thammarat Kittisiripat, an economist at TMB Bank.

The floods ravaged huge industrial zones last October,hitting car and electronics firms. Thailand is Southeast Asia'sbiggest car producer and the world's number two maker of harddisk drives.

The Industry Ministry has said car firms are now fullyoperational but some electronics firms may still not be back tonormal until the fourth quarter.

From a year before, the economy grew 4.2 percent in thesecond quarter, beating the forecast of 2.9 percent in theReuters poll. The agency revised up annual growth in the firstquarter slightly to 0.4 percent from 0.3 percent.

The NESDB said it expected the economy to grow 4-5 percentin the third quarter from a year before.

Last month, the central bank cut its GDP growth forecast FOR2012 to 5.7 percent from 6 percent. Economists in a Reuters pollpredicted 5 percent, after 0.1 percent growth in 2011due to the floods.